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The AES Corporation
AES : NYSE : Utilities
$10.63 -0.08 | -0.75%
Today's Range: 10.62 - 10.85
Avg. Daily Volume: 6,210,200
10/13/15 - 4:00 PM ET

Financial Analysis

AES CORP's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. AES CORP has weak liquidity. Currently, the Quick Ratio is 0.71 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 8.24% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY15 Q2 FY14
Net Sales ($mil)3858.04311.0
EBITDA ($mil)1003.01086.0
EBIT ($mil)704.0767.0
Net Income ($mil)69.0133.0

Balance Sheet Q2 FY15 Q2 FY14
Cash & Equiv. ($mil)1769.02421.0
Total Assets ($mil)38584.039433.0
Total Debt ($mil)20763.021723.0
Equity ($mil)3864.04211.0

Profitability Q2 FY15 Q2 FY14
Gross Profit Margin27.2926.4
EBITDA Margin25.9925.19
Operating Margin18.2517.79
Sales Turnover0.430.42
Return on Assets2.34-0.15
Return on Equity23.422.37
Debt Q2 FY15 Q2 FY14
Current Ratio1.151.11
Interest Expense374.0371.0
Interest Coverage1.882.07

Share Data Q2 FY15 Q2 FY14
Shares outstanding (mil)682.61723.22
Div / share0.10.05
Book value / share5.665.82
Institutional Own % n/a n/a
Avg Daily Volume6171130.06070935.0


HOLD. AES CORP's P/E ratio indicates a significant discount compared to an average of 42.84 for the Independent Power Producers & Energy Traders industry and a significant discount compared to the S&P 500 average of 19.38. Conducting a second comparison, its price-to-book ratio of 1.75 indicates a discount versus the S&P 500 average of 2.58 and a premium versus the industry average of 1.45. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. The valuation analysis reveals that, AES CORP seems to be trading at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
AES 7.85 Peers 42.84   AES 3.56 Peers 6.52

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

AES is trading at a significant discount to its peers.


Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

AES is trading at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
AES 7.46 Peers 20.69   AES 0.45 Peers 2.91

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

AES is trading at a significant discount to its peers.


Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

AES trades at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
AES 1.75 Peers 1.45   AES 869.23 Peers 165.92

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

AES is trading at a premium to its peers.


Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

AES is expected to have an earnings growth rate that significantly exceeds its peers.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
AES 0.41 Peers 2.11   AES 0.28 Peers 47.81

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

AES is trading at a significant discount to its industry on this measurement.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

AES significantly trails its peers on the basis of sales growth



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